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Apollo board approves expansion plans

Apollo Tyres Ltd. announced its board of directors approved projects at two tire plants and authorized the company to issue securities to raise funds for the projects at its July 2, 2014, meeting.

The board approved an expansion of truck-bus radial capacity at the company’s Chennai plant in India from 6,000 tires per day to 8,900 tires per day. The board noted the improved demand outlook and the fact that the current Chennai project is generating returns ahead of projections.

The board also approved a further conversion of the company’s Kalamassery plant, in the southern Indian state of Kerala, from bias truck tires to specialty/industrial tires.

The company estimates $340 million (20,500 million rupees) for these projects.

Apollo says it plans to raise funds to pursue these organic growth opportunities and for other corporate purposes. The board authorized the company to raise funds, subject to approval from shareholders, by issuing up to $200 million in securities.